TV and CTV are now the “largest single channel” of advertising for the Drizly liquor delivery service
Linear and connected television is now “the single largest channel” in which Drizly invests its advertising dollars, according to marketing director Scott Braun. The liquor delivery service is not simply focused on improving brand awareness, but on taking a “brand response” approach to television and CTV advertising.
“We don’t expect it to pay off in a matter of days like paid search would, but we don’t leave TV completely off the hook,” Braun said of the company’s TV and CTV strategy, which closely monitors sales statistics. “We’re trying to figure out what the return on investment is for television, not only in terms of awareness, but also in terms of profitability of television. It may take 28 or even 60 days [to know the ROI.]”
In previous years, Drizly focused primarily on paid search and paid social media, keeping measurement in mind. As the privacy landscape has changed, especially over the past year, the company has started testing other channels like TV and podcasts. After seeing promising results on TV and on CTV (Drizly did not specify what those results were), the company moved more advertising dollars there.
It’s unclear how much Drizly is spending now on TV and CTV exactly, as Braun declined to share details. However, Braun said that combined paid TV, CTV and social media now account for around 70% of Drizly’s media budget allocations. The remaining 30% of Drizly’s media budget is spent on paid search, affiliate marketing, display, and a handful of other channels.
In 2020, Drizly spent $ 11.8 million on media, up from $ 2.4 million in 2019, according to Kantar. In the first quarter of 2021, Drizly spent $ 2.5 million on media. In the second quarter of 2021, the company spent $ 2.8 million on media. These numbers do not include what Drizly spent on social media, as Kantar does not track social spending.
Drizly is not the only one who has increased his investments in television and CTV in recent years. Brands like 7-Eleven and Monster.com have made a comeback in TV advertising after reassessing the value of being on TV. Meanwhile, DTC brands have moved from Facebook and Instagram’s old DTC playbook to television, using the channel to build brand awareness and add legitimacy to their brands.
Another known strategy is DTC brands using more traditional advertising mediums to establish their legitimacy, noted Duane Brown, founder of performance marketing agency Take Some Risk. “A few years ago, DTC brands everywhere loved billboards and outdoor signage,” said Brown. “Now they seem to like television. “
While the strategy is used by a myriad of brands, Brown questions the ability to measure brand success with niche audiences. “I can see the pull for mass products,” Brown said. “Otherwise, you’re going to have to be like a sniper and really pick the channels and shows where your ad appears.”
The mass appeal of a liquor delivery service like Drizly then, which has experienced a boom due to the pandemic, will probably help the brand as it leans more towards TV and CTV.
While Drizly relies on television and CTV, the brand has done a “tightrope of brand response” ad copy for its spots, noted Braun. “It’s easy to imagine a very lifestyle-oriented place, given the category in which we play. At the same time, it is easy to directly respond to the advantages and functions of the application. [But focusing on just] either would be a lost opportunity.